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  • NAICOM: insurers surpass N1 trillion gross premiums in Q4 2023

    NAICOM: insurers surpass N1 trillion gross premiums in Q4 2023

    The National Insurance Commission (NAICOM) has announced a total of N1.003 trillion in premiums for the final quarter of 2023, representing about 27 percent growth compared to N790 billion recorded in 2022.

    The commission in a statement titled: “Market Performance At A Glance-Q4 -2023” released by the Statistics Department Directorate of Research, Statistics and Publications indicated that at the end of the financial year in quarter four (Q4)2023, said the insurance sector achieved its lofty goal of generating a trillion naira in premium income.

    It offered a breakdown of how the premium was generated stating: “The Non-Life business accounted for 61.3 percent of all premiums written during the year while the Life segment contributed 38.7 percent, valued at N388.1billion.”

    The market also recorded a retention of about 87.7 percent for the Life business and approximately 54% for Non-Life, according to the regulator, with the overall market average retention for the period under review being 66.7 percent.

    At 27.3 percent and 24.1 percent, respectively, Oil & Gas and Fire Insurances were the two main growth drivers in the non-Life segment of the market. While N114.8 billion was contributed by motor insurance, N59.1 billion by general accidents, and N69.1 billion by marine insurance.

    NAICOM said: “Net motor insurance premium stood at N100.3 billion, fire N75.3 billion, General Accident 39.0 billion marine 33.5 while oil and gas stood at N54.6 billion.”

    The commission stated that in terms of claims settlement for the period, the Life business recorded approximately 95 percent of net claims to the total recorded claims during the year, while the market average stood at approximately 71.4 percent of the N536.5 billion gross claims reported at the end of the fourth quarter of 2023; representing a direct reflection to the ongoing regulatory measures regarding claims settlement.

    In addition, a breakdown of claims payment by class was provided by the commission. It indicated that Motor insurance class paid gross claims of N32.1 billion and net claims of N31.0 billion, Fire insurance class paid gross claims of N61.5 billion and net claims of N41.3 billion, General Accident paid gross claims of N22.3 billion and net claims of 17.0 billion, Marine class had gross claims of N16.9 billion and net claims of 12.0 billion while Oil and Gas class had gross claims of N157.1 billion and net of N54.6 billion.

    Read Also: Crown Takaful Insurance gets NAICOM’s approval to take off

    According to NAICOM, the market was valued at N2.673 billion, with Life having N1.00 billion and Non-Life having N1.669 billion in assets.

    The combined market capitalisation of N851.0 billion, the Commission said, is made up of N670.2 billion for Non-life and N180.9 billion for Life.

    It added that the industry’s total outstanding premium during the reviewed period was 1.6 percent with the outstanding premium for Non-life at just 2.5 percent of the total premium, while the outstanding premium for Life was 0.2 percent.

  • Insurance industry records over N1tr premium income in 2023

    Insurance industry records over N1tr premium income in 2023

    Nigeria’s insurance industry closed 2023 with a premium income of N1.003 trillion, representing 27 percent increase when compared to the N790 billion recorded in 2022.

    The National Insurance Commission (NAICOM) released the figures in Abuja on Tuesday.

    The Non-Life insurance segment emerged as the dominant force, contributing 61.3 percent of all premiums written during the year.

    The performance was attributed to increased demand for coverage in key sectors like Oil & Gas (27.3 percent contribution) and Fire Insurance (24.1 percent contribution). 

    The Life insurance segment, though smaller, still played a crucial role with a 38.7 percent share, valued at N388.1 billion.

    The report also shed light on retention rates, a key metric indicating customer satisfaction and policy renewal. While the Life insurance business managed to retain 87.7 percent of its policyholders, the Non-Life segment witnessed a lower retention rate of 54 percent. The overall market average for retention stood at 66.7 percent.

    Read Also: Crown Takaful Insurance gets NAICOM’s approval to take off

    NAICOM said its focus on prompt claims settlement appears to be paying off. The Life insurance business demonstrated an improvement, settling approximately 95 percent of net claims during the year.  

    Overall, the market average for claims settlement reached 71.4 percent of the N536.5 billion gross claims reported in the fourth quarter of 2023. 

    This marks a positive step towards ensuring policyholders receive timely compensation for their losses.

    NAICOM’s “no-premium no-cover” policy, which emphasises the importance of premium payment for coverage, seems to be effective. The report highlights a significant decline in outstanding premiums, representing only 1.6 percent of the total premiums generated in the market during the period.

    The insurance industry also displayed a strong financial standing in 2023. The total assets of the market grew to N2.67 trillion while capitalisation stood at N851 billion. This robust financial position ensures the industry’s ability to meet its obligations to policyholders.

    NAICOM’s report painted a positive picture of the Nigerian insurance industry’s growth and performance in 2023.  The strong leadership of the Non-Life segment, improved claims settlement rates, and a decline in outstanding premiums all suggest a maturing market.  

  • Crown Takaful Insurance gets NAICOM’s approval to take off

    Crown Takaful Insurance gets NAICOM’s approval to take off

    A new Takaful Insurance company, Crown Takaful Insurance Limited, has received a licence from the National Insurance Commission (NAICOM) to commence business.

    Speaking on the licence and the launch of the firm’s products and services, the Managing Director/Chief Executive Officer, Nasir Abubakar Song, said they received the licence last December 18.

    He said the licence came barely three months after the issuance of an approval-in-principle by the Commission.

    He stated that the kick off of the company’s operations could not have come at a better time as we live in a world grappling with economic uncertainties and unpredictable risks.

    He said as a modern concept of ethical insurance, Crown TakafulInsurance is entering the risk-underwriting market as a solution provider offering technology-powered and value-laden products and services in creative and modified packages designed to meet the needs of millions of uninsured Nigerians and raise the level of insurance inclusiveness to a new level.

    He said: “The company will be leveraging the professionalism and innovativeness of the management and workforce to change the narrative by providing secured risk underwriting alternatives that can guarantee insurance for all cadres of participants in the Takaful insurance segment.

    “The Technical team of the company has designed a wide range of Takaful Insurance Services, tailored to meet the specifications, and demands of participants. It is an advanced approach to insurance and provides an ethical option for participants or policyholders, who require financial security – offering flexibility and quality that can transform the lives of Nigerians.

     “This Joint Guarantee Cooperative is open to all and focuses on social solidarity, financial protection, and transparency.’’

    Under Takaful, Crown Takaful provides security in areas such as automobiles, real estate, travels, and family/life insurance services, amongst others”, Song added. The insurer expressed optimism that the company would emerge as a leading player in the Takaful subsector of the insurance sector within six months of its operations and urged Nigerians “to analytically assess the values of its products and services to know that they are robustly packaged to deliver superior values to them in terms of assets’/familyprotection come rain or shine”.

  • Enterprise Life’s new app ‘a game-changer’, says Thomas

    Enterprise Life’s new app ‘a game-changer’, says Thomas

    The Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, has commended the Enterprise Life for the launch of AdvantageConnect, describing it as a significant game-changer for Nigerians.

    The commissioner commended Enterprise Life for taking the steps to digitise and enhance the accessibility of insurance products in line with the Federal Government’s vision.

    He said: “This is a truly innovative solution, and it aligns with our vision at the Federal Government to fully digitise insurance in Nigeria.

    “I commend the vision of Enterprise Life for leading in this area. With AdvantageConnect, I believe more people will have access to insurance and be brought into the financial net.’’

    Read Also: Nigeria is in good hands, Tinubu assures citizens

     AdvantageConnect is designed as a comprehensive digital insurance channel, leveraging geo-location technology to facilitate seamless interactions between customers, agents (LifePlanners), and Enterprise Life. The app offers features such as instant cover purchases, policy management, claims handling, and premium payments – all in one convenient platform.

    The Chief Executive Officer of Enterprise Life, Funmi Omo, emphasised the company’s commitment to providing Nigerians with a user-friendly and efficient solution for their insurance needs.

    “AdvantageConnect is more than just an app; it’s a revolutionary platform connecting individuals with nearby life planners, ensuring tailored life insurance solutions specific to their needs. We’re honoured to receive the endorsement of the Commissioner of Insurance, affirming our dedication to enhancing financial inclusion and security in Nigeria,” she added.

  • ‘Insurers show strengthin claims payment’

    ‘Insurers show strengthin claims payment’

    Insurance companies are showing strength in claims payment as ratio of total claims to total premium rise to 50.1 per cent in Quarter 3, 2023.

    The industry recorded a gross claims of N365.5 billion and net claims of N259.0 billion.

    Besides, the ratio of claims paid to claims reported in the industry stands at 70.9 per cent. Out of this, the ratio of claims paid to reported- non-life   55.0 per cent while ratio of claims paid to reported on life stands at 94.9 per cent.

    This was made known in a document entitled: “Nigerian Insurance Market at a Glance – Q3, 2023 released by the National Insurance Commission (NAICOM)

    Read Also; Makinde, Mbah, Obaseki, Aliyu present Appropriation Bills to Assemblies

    The operators however recorded a gross premium written of N729.1 billion.

    NAICOM further stated that the major drivers of growth during the period were; individual life, 36.4 per cent; group life, 34.5 per cent; oil and gas, 28.9 per cent, fire, 23.6 per cent and motor 18.1 per cent.

    Meanwhile, the industry total size stood at N2.8 trillion, with non-life standing at N1.74 trillion and total assets for life N1.07 trillion.

    NAICOM also disclosed that the industry’s total paid up capital was N422.3 billion; total capital, N848.9 billion and total statutory deposit N26.7 billion.

  • Clients pay N729.1bn premium for insurance cover – NAICOM

    Clients pay N729.1bn premium for insurance cover – NAICOM

    The National Insurance Commission (NAICOM) has said that insurance companies in Nigeria collected N729.1 billion as a premium to provide insurance cover for their clients.

    This is contained in the Nigeria Insurance Market Q3, 2023 Report released by NAICOM. The report highlights the robust performance of Nigeria’s insurance market, showcasing a Gross Premium Written of 729.1 billion Naira.

    The sector demonstrated significant growth, with key drivers steering the momentum.

    In the non-life sector, oil and gas stood out with a 28.9% increase, followed by fire at 23.6%, and motor at 18.1%.

    Meanwhile, within the life segment, individual life exhibited remarkable growth at 36.4%, while group life saw a substantial increase of 34.5%.

    Read Also; FG unveils decent work programme to strengthen employees’ rights

    The comportment of insurance claims indicated a 50.1% ratio of total claims to total premiums, showcasing the industry’s responsiveness. Notably, the industry displayed a commendable 70.9% ratio of claims paid to report, with non-life at 55.0% and life at an impressive 94.9%.

    The market’s capitalization displayed a quarter-on-quarter increase of 1.5% and a year-on-year rise of 19.9%, reflecting the industry’s stability and growth. Total Paid-up capital stood at N422.3 billion, while the industry’s total capital and statutory deposit were recorded at N848.9 billion and N26.7 billion, respectively.

    The market size surged by 4.1% quarter-on-quarter and an impressive 23.5% year-on-year, reaching a total size of N2.809 trillion. Non-life assets amounted to N1.743 trillion, while Life assets totaled N1.06 trillion, underlining the industry’s substantial footprint.

    The Q3, 2023 report signals a thriving insurance industry in Nigeria, marked by significant growth across segments and prudent claims management. As the sector continues to evolve, this robust performance underscores its resilience and promising trajectory.

  • Clients pay N729.1bn premium for insurance cover – NAICOM

    Clients pay N729.1bn premium for insurance cover – NAICOM

    The National Insurance Commission (NAICOM) has said that insurance companies in Nigeria collected N729.1 billion as a premium to provide insurance cover to their clients.

    This is contained in the Nigeria Insurance Market Q3, 2023 Report released by NAICOM.

    The report highlights the robust performance of Nigeria’s insurance market, showcasing a Gross Premium Written of 729.1 billion Naira.

    The sector demonstrated significant growth, with key drivers steering the momentum.

    In the non-life sector, Oil and Gas stood out with a 28.9% increase, followed by Fire at 23.6%, and Motor at 18.1%. Meanwhile, within the Life segment, Individual Life exhibited remarkable growth at 36.4%, while Group Life saw a substantial increase of 34.5%.

    The comportment of insurance claims indicated a 50.1% ratio of Total Claims to Total Premiums, showcasing the industry’s responsiveness. Notably, the industry displayed a commendable 70.9% ratio of Claims Paid to Reported, with Non-Life at 55.0% and Life at an impressive 94.9%.

    Read Also: NAICOM highlights gains oncompulsory insurances

    The market’s capitalization displayed a quarter-on-quarter increase of 1.5% and a year-on-year rise of 19.9%, reflecting the industry’s stability and growth. Total Paid-up capital stood at N422.3 billion, while the Industry’s total capital and Statutory Deposit were recorded at N848.9 billion and N26.7 billion, respectively.

    The market size surged by 4.1% quarter-on-quarter and an impressive 23.5% year-on-year, reaching a total size of N2.809 trillion. Non-life assets amounted to N1.743 trillion, while Life assets totaled N1.06 trillion, underlining the industry’s substantial footprint.

    The Q3, 2023 report signals a thriving insurance industry in Nigeria, marked by significant growth across segments and prudent claims management. As the sector continues to evolve, this robust performance underscores its resilience and promising trajectory.

  • NAICOM highlights gains oncompulsory insurances

    NAICOM highlights gains oncompulsory insurances

    States and the Federal Government would gain reduction in their expenditures in event of disaster that may affect citizens by shifting the burden to the risk-bearers with restoration not settled from tax payer’s money if they enforce compulsory insurances, the Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Sunday Thomas has said.

    Thomas spoke at the 12th meeting of the National Council of Lands, Housing and Urban Development in Kaduna State.

    He said the states and Federal Government would also gain creation of employment opportunities for citizens of the state and have opportunity for enhancing the Internally Generated Revenue (IGR) of the respective states amongst others.

    He said these and many more are what they states and Federal Government would derive from complying with compulsory insurances even as he enjoined them to begin to make adequate provisions for insurance of public buildings and buildings under construction in their respective annual budgets.

    He said these categories of insurance are made compulsory by extant insurance laws in Nigeria and, thus, must be complied with by all.

    According to Thomas, Section 64 of the Insurance Act 2003 makes it mandatory for individuals, governments and corporate organisations that undertake the construction of any building above two (2) floors to procure a builder’s liability insurance policy (building under construction) from any of the NAICOM’ licensed Insurer in Nigeria.

    Read Also: NAICOM partners NCRIB to promote professionalism

    Speaking further, he said Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in the country to be insured. This is to protect innocent victims in the events of accidents and other disasters that may occur while they are within such premises.

    Participants at the session include the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa; Minister of State, Housing and Urban Development, Abdullah Tijjani Gwarzo; Chairman, Senate Committee on Housing and Urban Development, Sen. Aminu Tambuwal; Chairman, House Committee on Housing and Habitat, and others.

    , Hon. Balele Aminu and Chairman, House Committee on Urban Development and Regional Planning, Hon. Abiante Awaji, The Permamnent Secretary, Federal Minstry of Works and Housing, Mahmuda Mamman; Commissioners, Permanent Secretaries, Directors of Lands and Housing from the 36 States of the federation; Managing Director of Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinancing Company, Shelter Afrique, etc.

    Thomas urged the various state governments to emulate the Lagos State government by domesticating the insurance laws in their respective states.

  • NAICOM partners NCRIB to promote professionalism

    NAICOM partners NCRIB to promote professionalism

    The National Insurance Commission (NAICOM) has extended its hands of fellowship to the new leadership of Nigerian Council of Registered Insurance Brokers (NCRIB) to foster professionalism in the broking sector.

    The Commissioner for Insurance Sunday Thomas, said this at the investiture of Babatunde Oguntade, as the 22nd President of the NCRIB in Lagos.

    Thomas, who was represented at the event by Director, Policy and Regulation, NAICOM, Leo Akah, noted that NAICOM needs the full support of the Oguntade-led administration to promote professionalism.

    He promised NAICOM’s supports to ensure the new administration sustains legacies and implement new orders that would take the broking sector to a lofty height.

    Read Also:Form your own association, NAICOM tells Takaful operators

    The Commissioner congratulated Oguntade on his feat.

    Oguntade said he would leverage an eight-point agenda to break new grounds and sustain legacies laid by his predecessors.

    He noted that having engaged in wide range consultations, among members of the Council and some seasoned and well-meaning professionals, coupled with his experience and longtime personal interactions with members across the broad spectrum, he came up with; Breaking New Grounds; Sustaining Legacies as theme of his tenure as President.

    According to him, he would focus on financial solvency, professionalism, strategic government and institutional relations, mentoring, corporate visibility sustainance, secretariat development and international collaboration to take the sector to a lofty height.

  • Form your own association, NAICOM tells Takaful operators

    Form your own association, NAICOM tells Takaful operators

    • Jaiz Takaful shares N152m to contributors

    The federal government has urged operators of Takaful in the country to form an association that will attract greater awareness to the alternative financial service.

    This call was made by Commissioner for Insurance, Mr. Sunday Thomas yesterday in Abuja when Jaiz Takaful shared N152 million surplus to its contributors.

    According to Sunday Thomas, the Takaful operators need to come together, form an association and do something about awareness.

    “Of course we will do our part as regulators but the operator too has to do his own, now we have the social media and so many other methods of making sure that people are aware. Financial literacy is very important.

    “Nobody in schools is teaching financial literacy, so the job falls on the operators to do that, people have to know their income, their savings, their insurance, tax and pension,” Thomas, who was represented by Mr. Ahmed  Kollere, said.

    Chairman, Jaiz Takaful Insurance, Hajia Zainab Abdurraahman said the “surplus distribution of N152 million is a reflection of the collective efforts of participants and the dedication of the team at Jaiz Takaful Insurance Ltd.

    Read Also: Jaiz Bank’s net profit rises by 51% to N3.9b in six months

    “It is a celebration of our shared values and our unwavering commitment to serving our community.

    “As we distribute this surplus, we are not just providing financial benefits; we are reinforcing the bonds of trust and solidarity that underpin our operations,” Abdurraahman said.

    It is a reaffirmation of our promise to stand by you in your times of need and to share the benefits of our collective success.

    In his address, the Managing Director/Chief Executive Officer of Jaiz Takaful Insurance Ibrahim U. Shehu said “the takaful industry in Nigeria is presently a small but growing one, riding on the growth of Islamic financial services. The latest estimates as of 2022 place total direct Takaful premiums/contributions at approximately N8 billion and about half are written on non-family policies”.

    He further explained that “annually we distribute surplus for the previous year, because all businesses taken under a financial year must elapse. This is exactly what we are doing and this is consistent with Jaiz Takaful, we do it and every year the surplus fund keep increasing because of the increased number of participants. Over a thousand participants will benefit from the surplus sharing.